You're perpetuating the myth that this is a pension issue. The root cause is the frozen tax thresholds and anyone with an income near to £12500 now will be affected. The fudge of 'triple lock plus' dodges the main issue - Campaign to drop this idea and to change tax thresholds for all.

All state pensions should be tax exempt so it isn’t counted whatsoever. It would be nice if UK state pensions were as good as those elsewhere in the world.

@mattybreeze1422

29 күн бұрын

It'd be nice but it's not affordable, that gives many pensioners who do have personal pensions or other income a tax break of around £2,514 as their tax free allowance would now start from their personal income that would usually be taxed at roughly 20%. Other countries with 'good' pension systems tend to have hybrid private/public systems like the Australian Superannuation, we now have similar systems in the UK with auto-enrolment but we only started it 10 years ago so many current pensioners benefitted very little from the change. So many worked all their life and have no workplace pension because employers didn't have to give one. This is why so many older people are in bricks and mortar which in turn hits the cost of living of younger people. If the tories did one good thing it's auto-enrolment but we won't really see the benefits maybe until those under 40 now reach pension age.

@slayerrocks2

29 күн бұрын

It always comes down to priorities. It could be affordable if multinationals were taxed on their uk revenue, if Sunak hadn't given £10 billion tax cuts on bank profits, if we weren't sending billions to Ukraine, if we weren't burning £1.4 billion of PPE, if we tax price gouging by oil and energy companies and supermarket chains, if we properly taxed foreign property investments, etc.

@kevinsyd2012

25 күн бұрын

The UK state pension is roughly in the middle of the EU countries, so it is far from the lowest. Those at the top of the table pay much higher taxes to support their pensions.

@suchisthismystery2814

3 күн бұрын

@@mattybreeze1422 It can be made affordable and it must be made affordable.

which one of us is being stupid. The 20% will only be on the money above the current 12500.00 of earnings

@davidoakley2722

28 күн бұрын

This is what I was thinking so I do not think we are both stupid

@Sp_75-76

28 күн бұрын

@@davidoakley2722 In that case you should make it clear, there are a lot of pensioners who believe that they are going to be worse off. whereas for each rise in pension the will be 80.00 better off for every 100.00 of the rise

Just get the political parties to up the threshold or you will pay tax at some point. What a rip off …. This is not even a minimum wage to live on!

Not sure the state pension will reach that amount by 2027, maybe by 2030. But that's 6 yrs away and I'm sure the personal annual tax allowance of £12570 will be increased by then . They'll say anything to get viewers. And the UK state pension needs to go up more as it's pretty low in relation to many other countries and their costs of living, prices

So just for saying sake. Pensioner’s tomorrow were given a state pension of £13,000 and then had to pay tax on £480 @ 20% = £96 tax over the year. It would still give them £12904 per year. Is that not better off?

@conversationofmoney

29 күн бұрын

You’re not accounting for core inflation but potentially

@RustyVanDoor

29 күн бұрын

12904 is still lower than the recommended minimum

@markeh1971

29 күн бұрын

Or just keep paying more so that the final income is what it should be. Can’t see that happening Take care M..

@user-zw3bg9vr5g

28 күн бұрын

❤Thank you for posting this useful information.My husband and I have been aware for years that neither of us could afford to live as a single pensioner. So for the past ten years we have cut right back on our spending and saved as much as possible the plan being that we would have money set aside for house repairs as a safety net if one of us passes away before the other. It saddens me😢that Labour intend to punish savers for being responsible in preparing for our future.The other thing that bothers me is the young who complain about paying our pensions via their taxes. We Pensioners have paid into the system for 50 years.

The Tax threshold should be adjusted for everyone, otherwise its a stealth tax on the lower paid and pensioners who only have state pension.

@markeh1971

29 күн бұрын

Yes. It sums up the current Conservative ideas on tax. Tax, Tax, Tax rather than growth and get more tax in through that. Strangely it was Truss economics which the Conservatives turned their backs upon. We’ll come July 4 we will see what the people say. Ironically Labour are following Truss economics! Take care all M

@kevinsyd2012

25 күн бұрын

Clearly people need to save and use workplace pensions, not rely only on the state pension.

I think one of the main issues - is people who have never had to do a tax return, now having to do one. I would do my Mum's for her, but other people may not have anyone to help.

Reform is going to raise the tax threshold START TO £20,000

@conversationofmoney

28 күн бұрын

That would help a large portion of the population particularly those on low incomes for sure

The triple lock is nothing to do with the personal tax allowance, This has been frozen until 2025 /26 and it is highly unlikely that Labour will change that. Pensioners will only pay income tax on any amount above £12,570.

You are talking as if the tax will be on the whole of the amount. It’s only on the bit above the personal allowance so it just means the increase will be slightly less. Not exactly the crisis you are trying to create.

@conversationofmoney

29 күн бұрын

It's not my crisis to create, i"m simply highlighting what's due in the next few years.

@user-io2et5bv2s

28 күн бұрын

Agree Richard…although not ideal, the effect is minimal.

Tax allowence os frozen because the govement have messed up so bad they need more money. 2028 is so far away and who knows if it will even go up then sadly

@conversationofmoney

28 күн бұрын

It's an indirect tax increase really

How about take the state pension out of being part of your income and you only pay tax on your private pension income once you go above the £12570 threshold. Effectively no one would pay tax until they are go beyond £24,000. The money lost could be recouped by only allowing those who are in the 40%+ tax bracket to only get 20% tax relief on pension contributions rather than the 40%.

I think you can (salary sacrifice) make a pension contribution before tax to keep you below tax threshold and you get 25% added which you can immediately withdraw?

@markeh1971

29 күн бұрын

This is what you get if you retire before state pension age and take it. The first 12570 becomes zero rated tax, the you have the 25% tax free on top. If you don’t need it stick it in an ISA. Take care M.

I would appreciate, if you could do a blog on how to withdraw cash from SIPP Drawdown pension pot on tax efficiently 🙏🏽

Just picking up on your point about Retirement Living Standards and the State Pension being below the minimum for a comfortable retirement. Isn't the state pension only meant to be the foundation of your pension? Isn't the expectation that you also have a DC (Or DB) personal pension on top of that which should then provide you with a comfortable retirement? That's certainly what is hammered into us these days.... maybe things were different in the past? For me I think the bigger problem is that the triple lock isn't affordable. On average it will grow by greater than the rate of inflation (The rate of inflation being one of the locks, but the other 2 potentially being higher than the rate of inflation, meaning that on average it will be greater than the rate of inflation.), which means in the long terms it's not affordable. All parties know this but no party can risk not including it in their manifesto for fear of losing a lot of voters. Eventually however this will need to be addressed... my fear is that this could end up with the State Pension being means tested, which would be fundamentally unfair.

@slayerrocks2

29 күн бұрын

The triple lock was designed to increase the value of state pension to combat pensioner poverty. The state pension has only just reached the level, compared to average earnings, as it was in the 50s. One could argue that it hasn't really achieved this by solely increasing, but by earnings being suppressed over the past 14 years. A race to the bottom.

@conversationofmoney

29 күн бұрын

It is indeed, the introduction of auto- enrolment was that trigger to ensure no is reliant on the state pension. Unfortunately there are about a million pensioner in that position which is pretty sad

@markeh1971

29 күн бұрын

Hi the triple lock was put in place because successive governments failed to raise it enough to stop pensioner going deeper and deeper into poverty. There is no pension pot for the state pension and that is the issue, it’s a big ponsie scheme. To be saving for your own pension you need either a longer time period or a higher amount of contributions. You could take out a lifetime ISA and use that to retire at 60 if you contribute long enough. Lots of videos on pensions. My only advice is - start NOW! Take care M.

@slayerrocks2

29 күн бұрын

@conversationofmoney that is fairly time-dependent, but if the standard of living for working people continues to fall, or even just remains low, people struggling to put food on the table or keep the lights on, won't be able to sacrifice even a small amount for the future. The freezing of personal allowances is an added negative. "Starve today, so you can pay the taxman when you retire."

PLSA levels for minimum, moderate and comfortable are way out, more accurate are the levels as given by Which organisation.

@conversationofmoney

28 күн бұрын

Do they paint a much more bleek picture

@DeeCee-nb6ev

28 күн бұрын

@@conversationofmoney on the contrary, Which levels are lower so according to them the minimum, moderate and comfortable amounts are a lot less. This comes from research amongst Which members. The PLSA comfortable level is £37,000 (for a single person), thats higher than the average wage. In retirement assuming you are not paying rent or mortgage you should be able to get by on two thirds of what you were earning.

@user-yq2wk6yg8s

12 сағат бұрын

@@DeeCee-nb6ev More people will be paying rent or mortgage for longer in the near future, given the mess we are in. Mostly just the lucky ones with a bank of mum and dad will be able to get their own place.

Surely the wife can still hand over part of her tax allowance to her husband? This should mitigate the overall effect on a retired couples tax liability

@jeremybarker7577

26 күн бұрын

If they both receive the state pension at a level that's above the tax allowance that wouldn't help. It only makes a difference if one of the couple has income lower than the tax allowance.

Born free tax till death …. Skill to live and foolish to work in the uk!

4:35 err yes correct you will need to pay tax, but you will be receiving more? Tax is never over 100%. Why should it be right that people working should pay tax but people with benefits over the limit shouldn’t it’s this kind of muddled thinking that has us where we are today.

@conversationofmoney

28 күн бұрын

The 'promise' has always been that the state pension wouldn't be taxable. This potentially changes that, but I see what you're saying as they class the state pension as benefit now

Get it right all pensioners do no get the full state pension they get much less if they were of pension age before 5/4 /2016 and those pensioners had to have fifty years of contributions not thirty five years like the new pension 😊

@conversationofmoney

28 күн бұрын

WHich would mean even worse living standards if they don't have ample income form other sources.

@jeremybarker7577

26 күн бұрын

Many who reached pension age before 6 April 2016 are entitled to an earnings-related additional pension, which can be as much as just over £200 a week, in addition to the basic pension (currently £169.50 a week) giving a total pension in excess of £370 a week.

I think your scare mongering a bit. Only the amount of money above the tax threshold (12k ish) will be taxed, not all the pension amount

Interesting that he is vague on what amount is actually taxed. Tax is only paid on whatever one receives ABOVE the personal allowance. However, he doesn't state this explicitly, so a person less-than-savvy in financial matters might well be led to believe they will have to pay it on the whole lot. Maybe he's just poor at explaining things? Maybe its a political agenda? Or maybe he doesn't care what distress and panic he might cause to vulnerable people through half-truths, so long as he gets a sensational video with lots of clicks? You decide.

State benefits are there to offer a lifeline, not to offer a comfortable cruise ship. 1 million people who have not made any provisions for retirement but rely on state pension? Clearly the aging population places a greater burden on a smaller working population. Perhaps once people’s pension exceeds 70k a year they no longer receive a state pension, or receive a reduction in state pension. Not easy though, punishing those who have paid the most in and made provisions.

@conversationofmoney

28 күн бұрын

The growing rate at which people are entering the retirement phase alongside longer life expectancy, reduced birth rates and a smaller working population is already being highlighted as an issue. Some measure of chage is due at some point

Well there is something pensioners could do. Vote Reform. They want to lift the tax threshold to 20K mind you it wont bother me as I worked and paid into a works pension all my life its all taxed anyway even though they say they dont. Well why add them together then leave the state pension on its own. 🤬

I trust your figures but not checked, that there are 600,000 living solely on a state pension, but I’ve also read there are millions of people with over 1,000,000 when they retire. With hundreds of thousands retiring early. These people do not need the threshold increased, I do not need the threshold increased. Young families using food banks need the money.

@Makalon102

29 күн бұрын

The state pension being means tested is the proper way to go, someone with 10 million does not need the state pension

@user-xu8mt3hw3b

29 күн бұрын

@@Makalon102 why not £3,000,000 limit, this would give you a sustainable income of £120,000 a year, with this income wold a state pension really make a difference?

@Makalon102

29 күн бұрын

@@user-xu8mt3hw3b your right but to make it easier for people to digest I just used 10 mil because a lot of people seem dead against means testing pension

@slayerrocks2

29 күн бұрын

Why not set the threshold for means testing at the LTA? Not that I favour means testing. Everybody paid in to satisfy their part of the contract. Those who accrued larger pensions likely paid far more in.

@robbeales5516

28 күн бұрын

@@Makalon102 so they don’t need to contribute into the system then ? 😊

The US, despite its huge national debt, can afford a state pension that offers one-third of salary to the claimant, and this is TAX FREE unless you also have a personal pension. Why can't we do the same in the UK? It's not as if the US is a 'socialist' country, far from it. In fact, most western countries offer even more generous state pensions. The UK is bottom of the league - as always.

@jeremybarker7577

26 күн бұрын

The US Social Security Pension is earnings-related and can also be taken (at a reduced rate) from age 62.

@tancreddehauteville764

26 күн бұрын

@@jeremybarker7577 Yes, I know. The UK state pension is chicken feed: $14k a year at 67.

Why should a pensioner be exempt from tax when a single mother earning the same income have to pay tax? The answer is to increase the thresholds for all. Pensions have increased significantly recently. Pensioners like everyone else have the opportunity to claim benefits and they have more opportunity. Why should pensioners with millions have their tax threshold increased at the expense of people paying tax that pays for their pensions?

@sidsod1616

29 күн бұрын

And who do you think paid tax for your education, medical, child allowance and the pensioners of that era whilst YOU were growing up, the tax fairy? No the pensioners of today paid taxes did all their working lives. As for pensioners being millionaires, most are not and only have the state pension to live on.

@kevinsyd2012

25 күн бұрын

Single mothers should get the kids' fathers to pay, not the taxpayer.

What a pointless video.

A totally useless video highlighting a problem that does not exist just to scare people. Only the income above 12,750 will be taxed, not the whole pension.